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Time Value

Business  Time to maturity  Time value of money
04/25/2014

Time Value of Money
Imagine that a carton of Oregon Strawberry costs $10, and you invest $5 in a company that makes the produce. The investment yields and you capitalize this amount in a year.


Time Value Of Money
The recognition that a dollar in the present is more valuable than a dollar in the future.

Definition of
time value
Markets
market value minus face value the premium at which an option is trading relative to its intrinsic value ...

time value
Because an option grants the holder a right, it has value for the holder. It represents a liability for the issuer. Option valuation is any procedure for assigning a market value to an option.

Time Value
The value of an option that captures the chance of further appreciation before expiration.

More Time Value of Money Tutorials
Compounding Interest Monthly, Quarterly, Semi-Annually or Monthly
Short Term Time Value of Money
Real and Nominal Interest Rates
Long Term Time Value of Money Practice Questions 1 ...

Time value of an option
Definition: [crh] The portion of an option's premium that is based on the amount of time remaining until the expiration date of the Definition: ion+contract"option contract, ...

Time value is, as above, the difference between option value and intrinsic value, i.e.
Time Value = Option Value - Intrinsic Value.

Time Value of Money - The concept that money today is worth more than the same amount in the future, when inflation has reduced its value.

Time Value of an Option
Time Value of an Option It is the part of the option's premium, which is based on the time remaining till expiry of the option's contract.

Time Value Of Money: Because money invested in a security or deposited in a savings account will earn income over time, there is a value placed on the use of money for any given period.

Time Value - The part of the option premium derived from the volatility and the time remaining until expiration. It is the part of the option premium that is NOT the intrinsic value.

time value
The portion of an option's value imputed to the possibility that the price of the underlying will move in the option holder's favor during the time remaining before the option expires.
times interest earned ...

Time value of money
The time value of money is the rate at which the value of money is traded off as a function of time.

Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar in the hand today can earn INTEREST during the time until the future dollar is received.
Tobin, James ...

Time value of money - This relates to the concept that one $ a person has today is worth more than a $ that a person has tomorrow.

Time value of money
The potential of an investment to increase in value through periodically compounded earnings.
Tip
An amount paid for a service beyond what’s required, usually to express satisfaction; also known as a gratuity.

Time Value
This is the sum of money that an option's premium surpasses its intrinsic worth, and is also called as 'time premium'.
Times Interest Earned ...

Time Value or Extrinsic Value The amount that the current market price of a right, warrant or option exceeds its intrinsic value.

Time value of money
The time value of money is money's potential to grow in value over time. Because of this potential, money that's available in the present is considered more valuable than the same amount in the future.

Time value of money
Investments generate cash flow to the investor to compensate the investor for the time value of money.

Time value of an option
The portion of an option's premium that is based on the amount of time remaining until the expiration date of the option contract, ...

Time Value
The amount of an option premium that exceeds the intrinsic value of an in-the-money option. A call option with a strike price of 30, for example, has a premium of 3.

Time Value - Has two general meanings. The first is the value or amount of a sum of money adjusted by an interest rate for a given time period. The second common usage is in the context of options.

Time Value
A phrase used in relation to options. Time value is any portion of the option premium over an above the intrinsic value.

Time Value or Extrinsic ValueExpand/Collapse
The amount that the current market price of a right, warrant or option exceeds its intrinsic value.

the time value of money
the opportunity cost of money
macroeconomic price changes (inflation)
Mathematically, interest generally falls in one of the following two categories: ...

The time value of money
Risk aversion
The risk free rate of return, risk premia and yield spread
Diversification
NPV and DCF valuation
Dividend yield and flat yield.
Internal rate of return and yield to maturity
Compound growth
Valuation ...

Also called time value, the amount by which an option price exceeds its intrinsic value.

Also known as time value. Extrinsic value is the price of an option minus its intrinsic value. As out of the money options have no intrinsic value, their option premium is based entirely on extrinsic value.
Fair Value or Theoretical Value ...

Compounding the time value of money for separate time intervals.
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Personal Finance Glossary ...

Time Value
The concept that money now is worth more than money in the future, because money now can earn a return by being lent out. In valuing compani...(Read more)
Timely Execution ...

A measure of the time value of money that fully reflects the effects of compounding.
Effective spread
The gross underwriting spread adjusted for the impact of the announcement of the common
stock offering on the firm's share price.

Understanding The Time Value Of Money
What Is A Small Cap Stock?
Time Value Of Money: Determining Your Future Worth
What Mutual Fund Market Cap Suits Your Style?

including time value of money considerations.
Claimant A party to an explicit or implicit contract.
Clean opinion An auditor's opinion reflecting an unqualified acceptance of a company's financial statements.

Payables Related: Accounts payable Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money.

City code on takeovers and mergersSee: Dawn raid Claim dilutionA decrease in the likelihood that one or more of a firm's claimants will be fully repaid, including time value of money considerations.

Claim dilution A reduction in the likelihood one or more of the firm's claimants will be fully repaid, including time value of money considerations. Claimant A party to an explicit or implicit contract.

Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money. Paydown In a Treasury refunding, the amount by which the par value of the securities maturing exceeds that of those sold.

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This financial instrument incorporates the time value of money into the ceding process such that the CEDENT can reinsure its liabilities at a premium rate less than the true rate for the liabilities transferred (difference in the two rates to be ...

TIME VALUE OF MONEY The effect that time and compound interest has on money. TIMING RISK A form of investment risk that the investor may buy or sell an investment at the wrong time.

The value of the premiums for an option can be separated into two components that are intrinsic and time values. Intrinsic value is the part of the option premium that is in-the-money. Out-of-the-money option has no intrinsic value.

The present value of a future payment, or the time value of money, is what money is worth now in relation to what you think it'll be worth in the future based on expected earnings.

Option trading strategies: Can be market directional, volatility directional, market neutral, volatility neutral, time value capture, time value payment, and numerous variants of the aforementioned. The basic building blocks are puts and calls.

It ignores the time value of money;
It is inflexible with respect to evaluating fluctuating income amounts during the project. Cash Payback Method ...

The starting point for understanding the time value of money is to develop an appreciation for compound interest. Albert Einstein is quoted as saying: 'The most powerful force in the universe is compound interest.

Prior to the option's expiration date, an at-the-money option also has time value. The time value of an at-the-money option is influenced chiefly by the amount of time remaining until the expiration date.

Discounted payback is a way of calculating the payback period while taking into account the 'time value' of money.

Business / Finance / Continuous Net Settlement (CNS): The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis.

The value of an option comprises a time value and an INTRINSIC VALUE, the latter resulting from the price of the underlying stock. As the expiration date approaches, the time value converges to zero.

DISCRETE COMPOUNDING - Compounding the time value of money for separate time intervals.
DISCRETE RANDOM VARIABLE - A random variable that can take only a certain specified set of individual p...

Present value accounts for the time value of money. The question is:
What is the value of several payments to be received over some future period, in terms of today's dollars?

The act of compounding the time value of money for separate time intervals.
Direct search market
Buyers and sellers seek each other directly and transact directly with each other.

Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.

Extrinsic Value
The price of an option less its intrinsic value. The entire premium of an out-of-the-money option consists of extrinsic value. It is therefore the option's time value.

More precisely, it means that stock prices change so that after an adjustment to reflect dividends, the time value of money, and differential risk, they equal the market's best forecast of the future price.

Time Value
Underlying
Underlying Security
Economics & Business
Equities - Stocks & Shares
Fixed Income - Bonds & Notes
Mutual Funds & Trusts
Indexes & Benchmarks
Investment Strategies
Mortgages & Real Estate ...

the ultimate goal of TEM is to allocate marketing resources to the activities, channels, and media with the best potential return and impact on profitable customer relationships. The new metrics of customer profitability, customer lifetime value and ...

method, average life is equal to the total bond years divided by the total number of bonds (one bond equals $1,000 par amount, regardless of actual denomination). Note that this computation method does not take into account the time value of the ...

See also: See also: Time value of money, Index, Transaction, Banks, Values

Business  Time to maturity  Time value of money
04/25/2014

 
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